Prices in the euro-zone are expected to continue rising by 1.7% annually until 2020, despite weak underlying inflation and economic growth, according to a European Central Bank survey released today.
The ECB yesterday confirmed plans to cut the 2.6 trillion euro stimulus package by the end of this year and raise interest rates sometime after next summer because it sees inflation holding up despite doubts about growth.
The latest survey supported this trend as expectations for headline inflation for the year and next two years have not changed, rising by 1.7% and long-term by 1.9%. The ECB targets the main inflation rate lower but near 2%.
